Up 15% on the year. Down 5% on the quarter.
Net Interest Income rose 38.4% from a year ago to LKR 10.30 Bn, helped by the AMF merger. Profit After Tax rose 14.7% to LKR 3.58 Bn but fell 4.9% on the quarter, as fee income fell and interest costs rose.
Share price
- Close, 23 October 2026
- LKR 140.00
- Results declared
- 23 October 2026
Jul–Sep 2026 results, line by line
| LKR Mn | Jul–Sep 2026 | YoY | QoQ |
|---|---|---|---|
| Net Interest Income | 10,298 | +38.4% | +1.2% |
| Fee Income | 1,429 | −21.1% | −18.4% |
| Total Operating Income | 11,868 | +26.5% | −1.9% |
| Impairment Charges | 904 | +412.6% | +7.4% |
| Operating Expenses | 3,631 | +24.7% | +3.3% |
| Cost to Income | 30.6% | −0.5 pts | +1.5 pts |
| Profit Before Income Tax | 5,809 | +15.8% | −5.6% |
| Profit After Tax | 3,578 | +14.7% | −4.9% |
YoY against the same quarter a year ago. QoQ against the previous quarter.
What drove it
- 01The AMF merger lifted the year
Profit After Tax is attributable to shareholders. Year-on-year growth includes AMF, acquired in November 2025 and merged in on 31 July. Since March, loans grew 13.2% to LKR 376.9 Bn and deposits 12.6% to LKR 213.5 Bn.
- 02Interest costs outpaced interest income
Interest Expenses rose 92.9% YoY against 60.5% for Interest Income, so the share kept as Net Interest Income fell to 51.2% from 59.4% a year ago. On the quarter, fee income fell 18% and interest costs rose 16%, while Net Interest Income grew 1%.
- 03Where operating profit went
Higher Net Interest Income added LKR 2,857 Mn. Fees and other income (LKR 367 Mn), impairment (LKR 728 Mn) and operating expenses (LKR 720 Mn) took away LKR 1,815 Mn, leaving LKR 7,334 Mn against LKR 6,292 Mn.
- 04Bad-loan ratio rose with the merger
The company's gross non-performing loan ratio rose to 2.77% from 1.55% a year ago and 1.41% in June. The net ratio was −0.27%: provisions exceed gross non-performing loans. Core capital was 17.07% and total capital 17.57%, against minimums of 10% and 14%.
Valuation at LKR 140.00
Group figures. Book value includes a LKR 4.07 Bn land and buildings revaluation this half; without it, PBV is 1.17x.
Three things to watch next quarter
- Non-performing loans. Does the gross ratio settle, after rising to 2.77% with the AMF merger?
- Fee income. Does it recover, after falling 21% on a year ago and 18% on last quarter?
- Net Interest Income. Can it keep growing while interest costs rise faster than interest income?
The company
Capital Trust Securities. For information only. Not investment advice. Source: L B Finance PLC interim financial statements to 30 September 2026 (unaudited). Group figures.